Welcome 1 AirPharma Webinar Host: Andrea GRUBER Head, Special - - PowerPoint PPT Presentation

AirPharma Welcome

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6 October 2020

AirPharma Webinar

Host: Andrea GRUBER Head, Special Cargo IATA Industry’s readiness and preparedness to manage globally a temperature-controlled supply chain - How to meet the upcoming demand in vaccines, health, and humanitarian supplies

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The webinar is being recorded and will be made available afterwards, including the PPT slides.

▪ Participants are cautioned that any discussion regarding matters such as fares, charges, division or sharing of traffic or revenues, or concerning any other competitively sensitive topics outside the scope of the agenda is strictly prohibited. ▪ As a result, questions pertaining to individual policies or commercial decisions and/or being subject to bilateral commercial discussions between airlines and their suppliers or customers will not be answered.

Agenda

▪ Welcome and Introduction ▪ State of the Industry ▪ Manufacturers Perspective & Expectations ▪ Challenges in the health and humanitarian supply chain ▪ Panel Discussion ▪ Questions & Answers ▪ Wrap up

Biographies are available on the IATA Website

State of the Industry

Glyn HUGHES Global Head of Cargo IATA

Glyn Hughes

Global Head, Cargo

State of the Air Cargo Industry

7 October 2020 8

7 October 2020 9

7 October 2020 10

7 October 2020 11

The next challenge… vaccinating the world

Providing a single dose of the vaccine to 7.8 billion people would fill 8,000 747 cargo aircraft Collaboration among all stakeholders is the key ingredient !!!

Manufacturer’s Perspective & Expectations

Luis ROMAN Global Vice President, Deliver The Janssen Pharmaceutical Companies of J&J

IATA Discussion Perspective and Expectations

Luis Roman

Global Vice President Deliver - Janssen

Johnson & Johnson

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~1,400

Global Transport Lanes

~800

Inter-regional Air Lanes

60+

Annual shipments countries import/export

100K 80%

Cargo on passenger aircrafts global logistics providers

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“Overnight” cancellations from airlines impacted cargo in-transit – bonded shipments stuck at transship locations Rapid response approach was required to manage freight with a spiral effect of airline cancellations, port and customs closures and J&J facility closures Time to establish alternate cargo solutions resulted in major delays in some key corridors “Force Majeure” declarations by airfreight forwarders, although contested and not accepted by J&J, were presented as the basis for forwarders’ indicating inability to ship at contract price, resulting in introduction of uncontrolled price increases Freight prioritization was performed based on airline-freight forwarder-shipper relationships – No standardized approach Industry shortage of specialized handling equipment Shipments of life savings drugs to remote countries Complex documentation and processing associated with PPE donations and shipments were resource intensive especially for the dangerous goods shipments

COVID Reflections

Crisis “Onset” and Some Continuing Challenges

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Continued availability of “freighters” and “passenger freighters” until passenger aircraft capacity stabilizes Visibility into latest market conditions and trends – routes, solutions, capacity and delay information available to all shippers Pricing regulations and controls to prevent irrational increases Standardized approach to validating shippers for freight prioritization – life savings drugs, PPE donations to humanitarian agencies etc. Peer groups for shippers to share best practices and efficiencies to the extent permitted under relevant laws and regulations Tackle vaccine capacity requirements innovatively – Combined charters, leverage capacity based on flows, fair pricing For destinations that require new and alternate routings, establishing industry wide security considerations

COVID Reflections

Industry Advancements to Address Challenges based on Lessons Learned

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Peer Groups Unified Controls

• Capacity
• Temperature Control Solutions
• Integrated network solutions
• Cost & Reliability
• Visibility
• Security

“HOW” “WHAT”

• Develop combined solutions and leverage capacity where feasible to meet the

global demands for vaccine shipments – Combined Charters, Flow Optimization based on origin and destination

• Review temperature control solutions for vaccines as an industry wide need

versus a peer to peer competition to the extent permitted under relevant laws and regulations

• Explore opportunities for a unified consortium of shippers, providers and

IATA to maintain governance and controls for fair shipping costs and reliable, secure and visible shipping process from origin to destination

Call to Action

Leverage the lessons learned from the crisis and tackle the new challenges associated with vaccine requirements and delivery as a combined humanitarian venture across the globe

Q & A

Manufacturer’s Perspective & Expectations

Victor SOH Director, Global Distribution & Logistics Strategy Lead MSD

COVID-19 VACCINES LOGISTICS CHALLENGES

Victor Soh

Sep 2020

COVID-19 VACCINES Logistics Challenges

1. Global Transportation: Competing for limited and volatile air and road freight capacity for cold chain products 2. Thermal Protection Systems: A range of thermal protection systems is needed to cater for all temperature requirements. 3. Customs & Regulation: Vaccines have to be delivered to vaccination sites as rapidly as possible to conserve shelf life. 4. Allocation: Central agencies & NGO’s have to deal with vaccine variations resulting in divergent distribution requirements 5. Distribution:

• Time pressure to expand existing and build new infrastructures, equipment and handling capabilities to cater for all

temperature requirements at an unprecedented scale, without certainty of when, what and how much vaccines will be approved and available. 6. Point of Use: Limited short-term storage capacity to cater for all temperature requirements, especially lacking for ultra frozen.

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Conclusion

1. Distribution system must be scalable and sustainable and does not disrupt existing cold chains. 2. Fast track and simplify customs and regulations to enable ease of flow. 3. Collaborate to jumpstart the development of multi-client storage and distribution systems that can cater to vaccines from 2-8°C to ultra low temp. 4. Partnerships to operate standard processes, enable economy of scale and risk sharing.

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COVID-19 VACCINES LOGISTICS CHALLENGES

Victor Soh

Sep 2020

Q & A

Challenges in the health and humanitarian supply chain

Andrew JACKSON Head of External Supply Chain Services World Food Programme (WFP)

Challenges in the Health and Humanitarian Supply Chain AirPharma webinar

6 October 2020

On any given day, WFP manages 100 aircraft

A key player: WFP Aviation Service

In sudden onset emergencies, WFP Aviation can respond and position an aircraft between 48 to 72 hours thanks to a pool

• f aircraft available in different parts of the world to ensure a

swift response. 2019 highlights WFP Aviation

• 35,100 mt of cargo
• 90 aircraft
• 620 airdrops

UNHAS

• 404,000 passengers
• 310 destinations
• 800 organizations

Common Services for the COVID-19 Response, 2020

• 169 countries reached
• 70,700 m3 transported
• 61 organizations supported

Cargo

• 67 destinations
• 23,600 passengers
• 1,323 flights
• Over 360 user organizations

Passengers WFP is leading a global supply chain response with unprecedented scale to support the humanitarian and health community. Medevacs

• 45 completed by WFP

, 22 carried out by the wider system

Lessons learned: how can we achieve success together?

Humanitarian Responsibility Affordability Flexibility Corporate Social Responsibility Effective Coordination

Good corporate practice: “Nobody is safe until everybody is safe” Affordable freight space for life-saving commodities (temperature sensitive medicines, nutritious foods and health products) Flexible, stand-by agreements for humanitarian partners to access aircraft over periods of time to direct supplies in an agile manner, when and where they are most needed. Sharing best practice and tech transfer, cold chain management, hub management, planning and contingency Arranging the end-to-end transportation service requirements would involve coordination between the UN and freight forwarders.

How is WFP preparing for the next phase of COVID-19?

Delivering temperature sensitive health commodities

Extend WFP’s global network to mitigate supply chain shocks & enable delivery through a highly agile pull delivery system. Equipping itself with cold chain capability for temperature sensitive medicines, medical and health related commodities (including vaccines). Offer risk mitigation, in-market flexibility and redundancy measures for countries with low or limited cold chain maturity and UN agencies who do not have capacity for cold chain storage and distribution. Pre-positioning for the phases of immunization for COVID-19 (2021-2023) by:

• 1. Leveraging on enhanced WFP strategic warehousing facilities;
• 2. Long term support for cold chain services, nutritious and temperature sensitive

medicines, medical and health related commodities (including vaccines).

Questions

AirPharma Webinar Panel & Interactive Q&A Session

Please submit your questions through the Questions box x and send to Everyone

Panel

Luis ROMAN Global Vice President, Deliver The Janssen Pharmaceutical Companies of J&J Victor SOH Director, Global Distribution & Logistics Strategy Lead MSD Enrica CALONGHI Director Verticals Global Head Pharmaceutical Logistics Air France KLM Cargo Brice BELLIN Healthcare & Life Science Director – Europe Bollore Logistics Joachim von WINNING, Executive Director Air Cargo Community Frankfurt Andrew JACKSON Head of External Supply Chain Services World Food Programme (WFP)

AirPharma Wrap Up – Call To Action

• Plan - Prepare - Inform
• Sharing is Caring – Global Collaboration
• “Continuous improvement is better than

delayed perfection” quote from Mark Twain

Industry’s readiness and preparedness to manage globally a temperature- controlled supply chain for vaccines, health, and humanitarian supplies

Additional Outreach & Engagement

Six-part Cargo Webinar Series from 6 – 13 October 14h00-15h30 CEST Wednesday, 7 October

• Cargo Claims & Loss Prevention Webinar

Thursday, 8 October

• Cargo Border Management Webinar

Tuesday, 13 October

• Cargo Operations Webinar

Wednesday, 14 October

• Lithium Battery Webinar

Thursday, 15 October

• E-Commerce Webinar

Thank you

▪ Please visit iata.org/events for the upcoming webinars ▪ Please visit iata.org/cargo for all COVID-19 resources ▪ Contact us at cargo@iata.org